Mixed outlook for auto industry
By Azlan Othman

A positive note and a setback in the auto industry are expected this year, car analysts said. Acknowledging the booming industry of the auto business in the country, another financing company will be opened.

Speaking on the condition of anonymity, a car analyst said, "much has been said about the new Finance Company for the past years and it's only now that the story re-surface again."

"With the setting up of another finance company, this is the positive sign of the auto industry as it would create more competitions, better service and they will visit the show room more often."

But the set back this year will be the rise in Japanese Yen and Euro currencies that will continue to leave a pinch to auto distributors that import Japanese and continental cars to Brunei. Adjustment in car price is forecasted this year. As for Korean cars, the impact would not be much as it is traded in the US dollars.

"Hence in order to push up the sale and as a way to do business, car distributors will be organising more activities like organising lucky draws in order to pick-up car sales", he said.

This is especially with the government servants will be receiving their annual bonuses this month and that hundreds of teaching graduates started their employment early January this year in which one of the priorities upon receiving their salaries will be to buy brand new cars.

Car industrial sources said that this year, one car dealer in Beribi light industrial area which recorded a 'healthy' sale last year would be launching six new car models while another car distributor will unveiled three new models including a flagship or top of the range model.

Latest statistics revealed that last year, 11,214 cars were sold, an increase of about 3 per cent compared to in 2002 in which 10,844 sale of cars were recorded. The total industrial volume for December last year was 953. However the highest ever recorded was in May last year with 1,025.

Meanwhile another analyst expressed his opinion that said that car statistics could also become a benchmark to indicate whether a country's construction industry shows a sign of good time or otherwise.

Statistics on the number of pick-up and heavy vehicles sold provide an indication that Brunei's construction industry. However last year, it was recorded that the sale of such type of vehicles is not encouraging.

Courtesy of Borneo Bulletin